Renewable Energy & Energy Efficiency For Sustainable Human Settlements SAHF Conference 10 th 13 th October 2010
International and national context International negotiations are ongoing to come up with a global agreement to tackle climate change and reduce CO 2 emissions post-kyoto Protocol. South African energy policy should operate within this context, and the South African government has made an international commitment to reach a 42% reduction in projected emissions by 2025. South Africa is among the 15 countries with the highest levels of CO2 emissions in the world.
Background SA has massive renewable energy resources. Renewable energy provides an immediate solution to the problems of access to energy and climate change, as well as helping to address service delivery and job creation. Greenpeace has published a report The Energy [R]evolution which sets out a vision for a low-carbon energy future for South Africa, and compares it to the scenario derived from the International Energy Agency s 2007 energy projection for Africa (IEA 2007). 3
Background Given the importance of encouraging a just transition to green jobs, Greenpeace Africa commissioned a report entitled South African Energy Sector jobs to 2030 from the Institute for Sustainable Futures (ISF), University of Technology, Sydney which has been peer reviewed by the Energy Research Centre, UCT. The report presents an analysis of the job creation associated with three scenarios to 2030: - The Energy [R]evolution - The IEA Reference case, and - The LTMS Growth Without Constraints (GWC) scenario 4
Outcomes: Energy [R]evolution Proactive investment in renewable power generation and energy efficiency by the SA government on a large scale would mean that renewable energy could provide up to 75.6 % of SA s electricity by 2050. If strong energy efficiency measures were implemented, an additional 20 000 MW of capacity would not have to be built, resulting in a cost saving of R 600 billion to the economy. Around the world, it is estimated that more than 2.3 million people are employed in the renewable energy sector. 5
Energy [R]evolution - electricity generation
Energy [R]evolution renewable electricity Renewable energy could provide up to 75% of SA s electricity by 2050. Investing in renewable technologies and energy efficiency would reduce CO 2 emissions in 2050 by 328 million tons per year.
Thousand jobs Threats, Challenges and Opportunities for action: Results of the jobs study The number of jobs under the [R]evolution, the IEA Reference, and the Growth Without Constraints scenarios are shown below. 160 140 120 100 80 60 40 20 0 2010 2020 2030 2010 2020 IEA Reference LTMS Growth [R]evolution without constraints 2030 2010 2020 2030 Efficiency Efficiency - SWH Ocean Solar thermal Geothermal PV Wind Hydro Biomass Nuclear Oil & diesel Gas Coal Coal exports Only direct employment in development, construction, manufacturing, operations and maintenance, and fuel supply is included in this study. The Energy [R]evolution could be a major employment creator in SA, with a net increase of 78 000 jobs by 2030. This is more than even the Growth Without Constraints scenario, which sees energy sector employment increase by 71,000, and considerably more than the IEA Reference case with estimated growth of 46,000. Jobs by technology and type in 2010, 2020 and 2030 8
Threats, Challenges and Opportunities for action: Results of the jobs study The Energy [R]evolution has the potential to create more employment in the energy sector than continuing with Business As Usual, whether this is defined as the IEA reference scenario or the Growth Without Constraints scenario. Investment in renewable energy on a large-scale, along with active support for local renewable technology manufacturing, therefore presents an opportunity for sustainable economic development and has significant job creation potential. 9
Key issues South Africa needs to unlock significant funding, as it has for recent coal investments, to establish sufficient renewable capacity to provide base load power. South Africa needs to implement a functional and decentralised power generation network through Independent Power Producers and local government. The transition from coal to renewables must be managed to ensure minimum disruption in the employment pool. Efficiency programs through the DSM mechanisms must be upscaled to create opportunities for entrepreneurs especially in the housing sector South Africa must create a model for green, sustainable development, that could exported across the developing world. 10
Key issues Energy efficiency is the most cost effective way of meeting energy needs, and Eskom should be required to demonstrate there is no demand management or energy efficiency alternative before developing any further non-renewable capacity. There should be a national program of providing energy efficiency packages, which should be free to low income consumers, and include efficient appliances, solar water heating, and insulation. Eskom should introduce a universal stepped tariff for residential customers. The Free Basic Electricity should be provided as the first block, followed by charges designed to recoup costs. The FBE should be increased to 150 kwh per month. 11
Key issues The cost of providing FBE, the energy efficiency packages and renewable energy feed in tariff should be spread across all electricity consumers. 12
Policy and governance requirements A co-ordinated policy of internationally legally binding targets and long-term stable domestic support for renewable energy must be implemented. Barriers to renewable energy development must be removed and the electricity market must be reformed a decentralised, energy-diverse system must be implemented. Government has to provide substantial incentives to local industry to establish a robust renewable manufacturing sector, capable of meeting South Africa s needs and boosting job creation through exports. 13
Concluding remarks South Africa has to decide now whether to be a technology importer or an exporter in the coming decades. Jobs created in the renewable energy sector are sustainable ones which would maintain economic development. Large scale development of renewable technologies combined with ambitious energy efficiency measures would reduce South African emissions, and make the South African economy much more resilient in a carbon constrained world. 14
This fragile earth deserves a voice. It needs solutions. It needs change. It needs action. Thank You. www.greenpeaceafrica.org